Markets say euro fall over

Story link: Markets say euro fall over

The value of the euro rose initially on Tuesday, mostly based on US economic data such as lower retail sales figures for May and slightly lower producer price inflation data, but then it fell again later in the day.

A number of analysts, however, believe that the euro is nearly through falling in relation to the dollar and will begin to rise in value once again when US interest rates rise and end the dollar’s rally, probably in three months or so.

The US dollar had gained 0.7 percent to $1.2023 against the euro by mid-day on Tuesday in New York, another new 9-month high.

Meanwhile, the euro fell 0.6 percent to £0.662 against sterling and fell 0.75 percent to ¥131.65 in relation to the yen.

The Slovak koruna gained 0.6 percent to SK38.405 in relation to the euro, a three-month high. In other currencies, sterling remained even at $1.8048 in relation to the dollar and at ¥197.57 against the yen.

Sterling maintained these values despite the Bank of England’s governor’s warning on the risks of inflation.